Studied by 2 people

0.0(0)

Get a hint

Hint

1

four profitability ratios

gross profit margin mark up net profit margin return on capital employed

New cards

2

ratio: gross profit margin

gross profit/revenue x 100

New cards

3

ratio: markup

gross profit/cost of sales x 100

New cards

4

ratio net profit margin

net profit/ revenue x 100

New cards

5

interfirm

between different firms, for example, comparing the performance of two different house builders

New cards

6

intrafirm

within the firm, for example, comparing this year's results with last year's, or the performance of the Leicester branch of a retail store.

New cards

7

Stakeholder

anyone with an interest in the activities of a business, whether directly or indirectly involved.

New cards

8

return on capital employed ROCE

net profit before interest and tax/ capital employed x 100

New cards

9

measuring liquidity

liquidity ratio measures how solvent a business is

New cards

10

Types of liquidity ratio

current ratio acid test ratio/ liquidity ratio (liquid cap)

New cards

11

current ratio

current assets/ current liabilities

New cards